In a business, the entity needs to have a well-planned organizational structure mainly because it will benefit the person from the beginning until the company’s long run in the business world if things go according to plan.
As a person inclined with business, it is just proper that the decision-making must focus on the economic benefit it will give to the users. The management must have a specific plan, its primary objective, a financial budgeting plan, and most importantly, the strategies a business will implement to grow more and operate according to its purpose.
Moreover, a business sometimes experiences problems, especially if it faces enormous losses due to certain factors, including economic crises, resulting in dissolution and, eventually, liquidation. Therefore, concerning this notion, a business owner would prefer having a structure wherein personal liability will not go beyond the entity’s capital contribution, just like how a corporation does not support unlimited liability.
Besides that, an organization might have fewer complications in the formation, just like in sole proprietorship and partnership compared to forming a corporation. Therefore, business owners in Indiana resorted to using the Limited Liability Company (LLC) as their business structure.
In this article, there are several steps to follow to help the business owners from Indiana to do their business under the LLC structure:
- The first step is to create a name. Choosing or making a business name is quite complicated because it should be unique. The entity must immediately file a reserve registration to the Indiana Secretary of State after settling for a specific name.
- For the second step, look for a registered agent and appoint him to assist the business processes. The agent will serve as the representative on the entity’s behalf in certain circumstances when the owner is not available for urgent matters.
- The third step is filing for the Articles of Organization. Every business entity needs to provide the articles because it will establish the members’ rights and obligations. Another step is to prepare an LLC Operating Agreement; although it is not a requirement, it is still advisable to have one. Lastly, it is helpful to have an Employer Identification Number (EIN) from the Bureau of Internal Services because it will benefit the entity to utilize financial opportunities to support the business.
When it comes to the Indiana LLC cost, the expenses might range from $150 to $180. It includes the online filing of the name in the Secretary of State, which is worth $20 and $30 if sent via mail. Also, the cost of filing the Articles of Organization is $100 by postal mail and $95 through an online payment.
Lastly, after the LLC’s successful formation, it will now require the entity to file for a Business Entity Report every after two years during the celebration of the formation date. It will need them to pay $32 to $50. To sum it up, in Indiana, making a business official using the LLC structure is less complicated than other existing business structures.